Does preventing the Imam from returning after he was seen with a married woman contradict Sharia and make the community hypocrites?

There is no reason to annul the contract with the man, as he resided for a full year without any observations, and perhaps he had a mahram (definition) relationship with the woman, or he encountered her in a public place for a legitimate need. It is permissible to speak with a non-mahram woman without seclusion for a legitimate need, and perhaps the one who conveyed the news was mistaken or harbored enmity towards the man. Furthermore, the man incurred expenses for travel and returned due to the promise of residency, so the residency permit must be sent to him and he should be informed of what happened, clarifying that a person is not held accountable for mere suspicion.